Will Vodka Growth Stay Strong?
Vodka is one of the best-selling spirits in the United States and has been for some time; vodka makes bar owners money, so it is suggested to understand where the elixir is headed in the near future.
Although vodka production in Russian had fallen in the first half of 2013 by about 30%, growth prospects remain positive with opportunities to grow larger quantities in mature and developing markets. The Russian Government has recently confirmed that in the next month vodka prices are to increase by nearly 17%. To save a few bucks, stock up while you can.
In a detailed report done by Bernstein Research, it was revealed that new opportunities will arise among the female consumers in emerging markets in the near and far future. Is that because of the epic boom of flavored vodkas? Who’s to know exactly; simply be sure to capitalize on this forecast.
It’s clear that there was a rapid emergence in flavored vodkas over the last couple of years with patrons, particularly female straying away from the typical vodka tonic. However, sales on flavored vodka have gone down in the United States by approximately 12% in the last 12 months. Ironically to go along with this drop in sales, new entries continue to be introduced into this category. In example, Wild Honey vodka was just recently launched by Smirnoff. While it is recommended to experiment with new flavors behind the bar, it is intelligent to acknowledge the anticipatory decrease in the flavored fad.
Bernstein Research also publicized the future popularization of premium vodkas. “It (vodka) is a category that is still extremely crowded with cheap vodka.” There is much potential for a significant expansion to standard vodka and eventually to premium.
Diageo has gained a global share in vodka, steadily growing at 7% this year according to IWSR. This is much due to the continuous success of Smirnoff Vodka and the explosive yet slowing performance of Ciroc.
Another competing global vodka producer, Pernod, is growing at a lesser pace at 1%. Absolut vodka has shown a relatively weak performance, particularly in the United States and this is explanatory towards the sluggish growth speed.
Vodka has been a reliable spirit throughout the world but more importantly for you as a business owner. This ever popular drink is going strong, so it is important to understand where it is headed; remember knowledge is power!